Correlation Between Thayer Ventures and Materialise

Can any of the company-specific risk be diversified away by investing in both Thayer Ventures and Materialise at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Thayer Ventures and Materialise into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thayer Ventures Acquisition and Materialise NV, you can compare the effects of market volatilities on Thayer Ventures and Materialise and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Thayer Ventures with a short position of Materialise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thayer Ventures and Materialise.

Diversification Opportunities for Thayer Ventures and Materialise

-0.5

Correlation Coefficient

Thayer Ventures  Materialise

Very good diversification

The 3 months correlation between Thayer and Materialise is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Thayer Ventures Acquisition and Materialise NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materialise NV and Thayer Ventures is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Thayer Ventures Acquisition are associated (or correlated) with Materialise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Materialise NV has no effect on the direction of Thayer Ventures i.e., Thayer Ventures and Materialise go up and down completely randomly.

Pair Corralation between Thayer Ventures and Materialise

Assuming the 90 days horizon Thayer Ventures Acquisition is expected to generate 6.31 times more return on investment than Materialise. However, Thayer Ventures is 6.31 times more volatile than Materialise NV. It trades about 0.05 of its potential returns per unit of risk. Materialise NV is currently generating about 0.18 per unit of risk. If you would invest  2.00  in Thayer Ventures Acquisition on September 17, 2024 and sell it today you would lose (1.00) from holding Thayer Ventures Acquisition or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Thayer Ventures Acquisition  vs.  Materialise NV

Thayer Ventures Acqu

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Thayer Ventures Acquisition are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Thayer Ventures showed solid returns over the last few months and may actually be approaching a breakup point.

Materialise NV

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Materialise NV are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Materialise unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thayer Ventures and Materialise

The main advantage of trading using opposite Thayer Ventures and Materialise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thayer Ventures position performs unexpectedly, Materialise can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Materialise will offset losses from the drop in Materialise's long position.

The idea behind Thayer Ventures Acquisition and Materialise NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.